EUR/AUD to continue trading higher towards 1.5180 and USD/CAD is trading above a major support area at 1.2525.
EUR/AUD Forecast – Euro To Test 1.5180?
- The Euro remains in an uptrend above the 1.5100 handle against the Aussie Dollar.
- There was a break above a bearish trend line at 1.5000 on the hourly chart of the EUR/AUD pair.
- Today, the Euro Zone Sentix Investor Confidence Index for Oct 2017 was released by the Sentix GmbH.
- The forecast was 28.5, but there was a rise from the last reading of 28.2 to 29.7.
The Euro started a nice upside move from the 1.4940 low against the Aussie dollar. The EUR/AUD pair moved higher and broke a couple of important resistance levels such as 1.5000 and 1.5100.
The pair also broke a bearish trend line at 1.5000 on the hourly chart and the 100 hourly simple moving average to trade above the 1.5100 resistance.
At the moment, the pair is testing the 1.236 extension of the last decline from the 1.5094 high to 1.4939 low. If buyers succeed in breaking the 1.5131 resistance, there is a chance of EUR/AUD testing the 1.618 extension of the last decline from the 1.5094 high to 1.4939 low at 1.5190.
In the short term, buying dips towards the connecting bullish trend line at 1.5100 can be considered with a stop of 10-25 pips.
Euro Zone Sentix Investor Confidence Index
Today, the Euro Zone Sentix Investor Confidence Index for Oct 2017 was released by the Sentix GmbH. The forecast was slated for a rise from the last reading of 28.2 to 28.5.
However, the actual result was above the forecast, as there was a rise from the last reading of 28.2 to 29.7. The German Services PMI was slated for a rise from the last reading of 53.5 to 53.8.
In an another release, the German Industrial Production for August 2017 posted a rise of 2.6% (MoM), a lot better than the forecast of +0.7% and more than the previous -0.1% (revised).
The overall result was positive and will keep EUR/AUD above the 1.5100 support in the near term.
USD/CAD Forecast – US Dollar Testing Crucial Support
- The US Dollar recently traded towards 1.2600 against the Canadian Dollar where it faced sellers.
- There is a major bullish trend line forming with support at 1.2490 on the hourly chart of the USD/CAD pair.
The US Dollar remained in a nice uptrend and recently attempted a test of 1.2600 against the Canadian Dollar. The USD/CAD pair traded as high as 1.2599, faced sellers and started a downside correction.
The pair has moved below the 38.2% Fib retracement level of the last wave from the 1.2461 low to 1.2599 high. However, the pair is currently testing a major support near 1.2525 and the 50% Fib retracement level of the last wave from the 1.2461 low to 1.2599 high.
As long as the pair stays above the 1.2525 support, it could bounce back and attempt a ride towards 1.2600 one more time.
Risk Disclosure: By trading a leveraged product your capital is at risk.
The information above cannot be a taken as an investment advice and FXPMarkets will not be held liable for any losses that may occur by using the provided above information.
For more information on risks, please read our General Risk Disclosure.